5-07 MAJOR NEWS! Conforming Jumbo Rates Slashed

[HLS]

Nic,

What are YOU thinking ??

As a mortgage professional, I tell people that it’s just gambling to get a 5 YR ARM, unless you are 90% sure that you won’t have that loan in 6-7 years.

If you plan on keeping the property for more than 7 years, in my opinion it would be very foolish to get the ARM.

You cannot put a price on the stress that many people face because their ARM will be adjusting in 12-24 months. (Some are freaking out, as they don’t qualify for a refi today)
The security of a 30YR fixed is cheap insurance.

You have no idea what any of the following will be in 5 YRS:
a) Interest Rates
b) Property Value
c) Your credit score
d) Your ability to qualify for a loan

Mortgage rates are historically low NOW. WHY GAMBLE ?
(For .005% for only 5 yrs ?)

If you plan on keeping the property, you think that rates will be lower in 5 years ? Even if you are right then you have the added expense of refinancing again.

If you can predict interest rates, who cares what your mortgage rate is. You can make a fortune trading bonds on Wall Street and pay cash for your house.

At today’s rate, I don’t think that anybody is offering you a “no fee no cost” loan at 5.375%/5.875%.
Please correct me if I am wrong.

Do you understand that if you plan on keeping the loan for more than 4-5 years, getting the “no cost” loan is a poor decision ? There are no FREE loans. You pay a higher rate for the life of the loan.

FNMA 5 YR JC ARM’s are a HIGHER rate than 30 YR Fixed.
Yes it is dumb. (Cheaper 5 YR ARM’s are only available below $417K)

I cannot believe the number of people who want to play games with the largest financing decision of their lives, and some make choices based on the words out of a hotties mouth on CNBC or a misleading commercial.

[contraman]

CV2,

Read the news, stay informed, think about distressed asset sales in the secondary market and what that means. We are doing them and the phones are ringing off the hook.

The lending agencies want to see this as they are getting govt incentives to do the write downs….and keep REO’s of their books……

Thanks for your concern though.

Sincerely, Contraman

[contraman]

CV2,

Read the news, stay informed, think about distressed asset sales in the secondary market and what that means. We are doing them and the phones are ringing off the hook.

The lending agencies want to see this as they are getting govt incentives to do the write downs….and keep REO’s of their books……

Thanks for your concern though.

Sincerely, Contraman

[contraman]

CV2,

Read the news, stay informed, think about distressed asset sales in the secondary market and what that means. We are doing them and the phones are ringing off the hook.

The lending agencies want to see this as they are getting govt incentives to do the write downs….and keep REO’s of their books……

Thanks for your concern though.

Sincerely, Contraman

[contraman]

CV2,

Read the news, stay informed, think about distressed asset sales in the secondary market and what that means. We are doing them and the phones are ringing off the hook.

The lending agencies want to see this as they are getting govt incentives to do the write downs….and keep REO’s of their books……

Thanks for your concern though.

Sincerely, Contraman

[contraman]

CV2,

Read the news, stay informed, think about distressed asset sales in the secondary market and what that means. We are doing them and the phones are ringing off the hook.

The lending agencies want to see this as they are getting govt incentives to do the write downs….and keep REO’s of their books……

Thanks for your concern though.

Sincerely, Contraman

[NicMM]

HLS,

In the beginning I was thinking about getting a 30 yr fixed as it is now much better than I could expect a week ago. I should be very happy to go with it. But when I did the math, it temptations to find out that it is about $200 a month difference and with the same monthly payment of a 30 yr fixed, in the ARM case I can add the extra $200 to my principle paid and that will make $17000 difference of principle paid and interest saved over 5 years.

Also with all the mortgage bail out chaos in past year, I really incline to believe that the government would like to yield over average American’s need (I know this confess will subject to a lot of laughters). See first the government increased the conforming limit; then when the mortgage industry answered it with a “conforming jumbo”, then the government took measures to get rid of that and make sure the policy be carried out. A week ago people all worried about the mortgage interest hike, and no one expected the drop. This let me start to double if my view was too pessimistic and conservative. That’s why I posted here to hear some advice.

[NicMM]

HLS,

In the beginning I was thinking about getting a 30 yr fixed as it is now much better than I could expect a week ago. I should be very happy to go with it. But when I did the math, it temptations to find out that it is about $200 a month difference and with the same monthly payment of a 30 yr fixed, in the ARM case I can add the extra $200 to my principle paid and that will make $17000 difference of principle paid and interest saved over 5 years.

Also with all the mortgage bail out chaos in past year, I really incline to believe that the government would like to yield over average American’s need (I know this confess will subject to a lot of laughters). See first the government increased the conforming limit; then when the mortgage industry answered it with a “conforming jumbo”, then the government took measures to get rid of that and make sure the policy be carried out. A week ago people all worried about the mortgage interest hike, and no one expected the drop. This let me start to double if my view was too pessimistic and conservative. That’s why I posted here to hear some advice.

[NicMM]

HLS,

In the beginning I was thinking about getting a 30 yr fixed as it is now much better than I could expect a week ago. I should be very happy to go with it. But when I did the math, it temptations to find out that it is about $200 a month difference and with the same monthly payment of a 30 yr fixed, in the ARM case I can add the extra $200 to my principle paid and that will make $17000 difference of principle paid and interest saved over 5 years.

Also with all the mortgage bail out chaos in past year, I really incline to believe that the government would like to yield over average American’s need (I know this confess will subject to a lot of laughters). See first the government increased the conforming limit; then when the mortgage industry answered it with a “conforming jumbo”, then the government took measures to get rid of that and make sure the policy be carried out. A week ago people all worried about the mortgage interest hike, and no one expected the drop. This let me start to double if my view was too pessimistic and conservative. That’s why I posted here to hear some advice.

[NicMM]

HLS,

In the beginning I was thinking about getting a 30 yr fixed as it is now much better than I could expect a week ago. I should be very happy to go with it. But when I did the math, it temptations to find out that it is about $200 a month difference and with the same monthly payment of a 30 yr fixed, in the ARM case I can add the extra $200 to my principle paid and that will make $17000 difference of principle paid and interest saved over 5 years.

Also with all the mortgage bail out chaos in past year, I really incline to believe that the government would like to yield over average American’s need (I know this confess will subject to a lot of laughters). See first the government increased the conforming limit; then when the mortgage industry answered it with a “conforming jumbo”, then the government took measures to get rid of that and make sure the policy be carried out. A week ago people all worried about the mortgage interest hike, and no one expected the drop. This let me start to double if my view was too pessimistic and conservative. That’s why I posted here to hear some advice.

[NicMM]

HLS,

In the beginning I was thinking about getting a 30 yr fixed as it is now much better than I could expect a week ago. I should be very happy to go with it. But when I did the math, it temptations to find out that it is about $200 a month difference and with the same monthly payment of a 30 yr fixed, in the ARM case I can add the extra $200 to my principle paid and that will make $17000 difference of principle paid and interest saved over 5 years.

Also with all the mortgage bail out chaos in past year, I really incline to believe that the government would like to yield over average American’s need (I know this confess will subject to a lot of laughters). See first the government increased the conforming limit; then when the mortgage industry answered it with a “conforming jumbo”, then the government took measures to get rid of that and make sure the policy be carried out. A week ago people all worried about the mortgage interest hike, and no one expected the drop. This let me start to double if my view was too pessimistic and conservative. That’s why I posted here to hear some advice.

[(former)FormerSanDiegan]

I know this confess will subject to a lot of laughters
Don’t worry about that confess to lots of laughters. Peoples with laughing for other main reason. Something haves do among capabilities for type english language.

[(former)FormerSanDiegan]

I know this confess will subject to a lot of laughters
Don’t worry about that confess to lots of laughters. Peoples with laughing for other main reason. Something haves do among capabilities for type english language.

[(former)FormerSanDiegan]

I know this confess will subject to a lot of laughters
Don’t worry about that confess to lots of laughters. Peoples with laughing for other main reason. Something haves do among capabilities for type english language.

[(former)FormerSanDiegan]

I know this confess will subject to a lot of laughters
Don’t worry about that confess to lots of laughters. Peoples with laughing for other main reason. Something haves do among capabilities for type english language.

[Author]

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